Page 121 - Foundations of Marketing

88 Part 2 | Marketing Research and Target Markets

and decision-making ability, some firms may choose to hire a consultant that can assist
with gathering and assessing the data involved in marketing research. Take a look at the
advertisement, for instance. Accenture is a high-tech consulting firm that helps companies
to improve performance through improved data-gathering and assessing methods. As the
advertisement indicates, understanding opportunities and successes and capitalizing on them
is critical to a firm’s ability to succeed. Having a full understanding of issues can help a com-
pany increase performance and develop an advantage over competitors. Accenture has been
hired by many firms, such as fashion retailers, to improve their website design, interactivity,
and response time to customer complaints—resulting in increased customer satisfaction and
3
revenues. Marketers should treat information as one of its resources, just as finances and
human capital are resources, and they must weigh the costs and benefits of obtaining infor-
mation. Information should be considered worthwhile if it results in marketing activities that
better satisfy the firm’s target customers, lead to increased sales and profits, or help the firm
achieve some other goal.

LO 2 . Differentiate between the TYPES OF RESEARCH
two major types of marketing
research—exploratory and
The nature and type of research a firm conducts will vary depending on the research
conclusive research.
design and the hypotheses under investigation. Marketing research can involve two forms
of data. Qualitative data yields descriptive, nonnumerical information. Quantitative data
yields information that can be communicated through numbers. Marketers may choose to
collect either or both, depending upon the information desired. To collect data, market-
ers conduct either exploratory research or conclusive research. Although each has a dis-
tinct purpose, they vary in levels of formalization and flexibility. Table 4.1 summarizes
the differences.

Table 4.1 Differences between Exploratory and Conclusive Research

Research Project Exploratory Conclusive
Components Research Research

Research purpose General: to generate insights Specifi c: to verify insights and aid
about a situation in selecting a course of action

Data needs Vague Clear
Data sources Ill-defi ned Well-defi ned

Data collection form Open-ended, rough Usually structured

Sample Relatively small, subjectively Relatively large, objectively
selected to maximize selected to permit generalization
generalization of insights of fi ndings

Data collection Flexible, no set procedure Rigid, well-laid-out procedure

Data analysis Informal, typically not Formal, typically quantitative
quantitative

Inferences/ More tentative than fi nal More fi nal than tentative
recommendations
Source: A. Parasuraman, Marketing Research , Second Edition. © 2007 South-Western, a part of Cengage Learning,
Inc. Reproduced by permission, www.cengage.com/permissions.

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